Do all employees need to submit their income tax return acknowledgement (PSR) to the employer?

Employees falling within mandatory return-filing criteria (including individuals earning above the taxable threshold or holding management/executive roles as specified in the Act) must furnish their PSR to their employer so the salary expense remains fully allowable.

When is WPPF (Workers’ Profit Participation Fund) applicable?

Under Chapter XV of the Bangladesh Labour Act 2006, companies meeting the statutory paid-up capital or fixed asset thresholds must establish a Participation Fund and Welfare Fund and allocate 5% of net profit accordingly.

Practice Area 06•Statutory & Advisory Practice

Payroll & Labour Compliance

Name: M.S. Salekin & Co.
Address: House No: 49/1/B (1st Floor), Purana Paltan Line, Dhaka-1000, Bangladesh, Dhaka, 1000, BD
Telephone: +88 01916 818858
Price range: ৳৳

Monthly payroll processing, employee salary TDS computation, Provident Fund & Gratuity accounting, and WPPF advisory.

Enquire About Payroll & Labour Compliance Speak with our office: +88 01916 818858

Service Overview

Payroll administration in Bangladesh intersects directly with the Income Tax Act 2023 and the Bangladesh Labour Act 2006 (as amended). Employers are legally obligated to compute monthly withholding tax on employee salaries, verify employee PSR submissions, deposit deducted tax to the government treasury on time, and structure terminal benefits accurately.

M.S. Salekin & Co. provides confidential payroll processing, salary tax structuring, and compliance support for Provident Funds, Gratuity schemes, and Workers’ Profit Participation Fund (WPPF) obligations.

Who This Service Is For

Corporate employers seeking confidential outsourced payroll processing and payslip distribution
HR and Finance teams requiring accurate FY employee salary tax (TDS) calculations and annual tax certificates
Organizations establishing or managing Recognized Provident Funds, Gratuity Funds, or WPPF trusts
Companies employing expatriate staff requiring work-permit-linked tax compliance

What We Do & Key Deliverables

Every engagement is scoped in writing with clear outputs reviewed by Mohammad Sirajus Salekin, FCA.

Monthly Payroll Processing & Bank Advice

Calculation of gross pay, attendance adjustments, overtime, PF deductions, loan recoveries, net take-home pay, and automated bank disbursement schedules.

Employee Salary Tax (TDS) Computation & Challan Support

Annualised tax projection for each taxable employee, investment rebate estimation, monthly TDS deduction, and treasury challan preparation.

Annual Salary Tax Certificates & Section 108/Withholding Returns

Issuance of employee salary and tax deduction certificates at year-end and preparation of statutory employer salary statements for the NBR.

PF, Gratuity & WPPF Advisory and Audit

Drafting trust deeds and rules, NBR recognition applications for Provident/Gratuity Funds, WPPF applicability assessment under the Bangladesh Labour Act 2006, and fund audits.

Documents Typically Required

We share a customized document request list upon engagement onboarding. Core records typically include:

Employee master roster with designations, joining dates, NID, and 12-digit e-TIN + latest PSR copies
Compensation structure / appointment letters showing basic salary, allowances, and benefits
Monthly attendance, leave, bonus, and variable incentive records
Employee investment declarations for tax rebate estimation
Existing Provident Fund, Gratuity, or HR policy manuals (if any)

Typical Engagement Timeline

Actual turnaround depends on transaction volume, readiness of primary records, and regulatory authority processing queues.

Phase 012 – 4 Business Days

Payroll Setup & Tax Slab Mapping

Configuring employee master data, salary heads, and current Finance Act tax slabs.

Phase 022 Business Days per month

Monthly Payroll Run

Processing monthly inputs, generating payslips, bank transfer files, and TDS schedules.

Phase 033 – 6 Weeks

PF / Gratuity Trust Deed & NBR Recognition

Drafting trust documents, registration, and filing application with the Commissioner of Taxes.

Relevant Bangladesh Laws & Authorities

Income Tax Act 2023 (Salary Withholding Provisions)

Mandates employer deduction of tax at source on salaries and verification of employee PSR

Bangladesh Labour Act 2006 & Labour Rules 2015

Governs employment terms, leave encashment, Provident Fund, Gratuity, and WPPF

National Board of Revenue (NBR)

Grants formal recognition to Employee Provident, Superannuation, and Gratuity Funds

Frequently Asked Questions — Payroll & Labour Compliance

Under the Income Tax Act 2023, the employer is treated as an assessee-in-default for undeducted salary tax, faces monthly penal interest, and the corresponding salary expense can be disallowed during the company’s corporate tax assessment.

Confidential Consultation • M.S. Salekin & Co.

Let’s talk about what comes next.

Schedule a confidential initial consultation with Mohammad Sirajus Salekin, FCA (Fellow Chartered Accountant (FCA), Member of ICAB) to discuss your organisation’s statutory requirements or personal tax filing.

Submit an Enquiry Call +88 01916 818858